New data shows more homes are on the market, but fewer people are moving
The US housing market is showing signs of gridlock, with buyers, sellers, and builders facing unique challenges but sharing a common theme: frustration.
According to Realtor.com®’s latest report, Cruel Summer: Why the US Housing Market Is Stuck, the market remains sluggish despite more than a year of rising inventory.
“The housing market is caught in a collective slowdown, touching everyone from buyers to sellers to builders,” said Jake Krimmel, Realtor.com® senior economist. “Despite facing different pressures, each group is reacting the same way, with hesitation and retreat. The result is a market that can’t gain meaningful traction.”
Home sales are near multi-decade lows even as inventory grew 28% from May to July, surpassing 1 million homes for three straight months, the highest since late 2019. Prices have stabilized, but high mortgage rates and economic uncertainty are keeping participants on the sidelines.
Affordability squeezes buyers
For buyers, affordability remains a major obstacle. The national median list price hovers near $440,000, little changed since 2022, but rising mortgage rates have driven monthly payments higher. Compared to 2019, households now pay about $1,200 more per month for the median-priced home.
Realtor.com® data show that only 28% of homes for sale are within reach of households earning the US median income of $78,770. Even in markets with slight price declines, high interest rates have kept buying power weak.
Sellers hold back
Sellers, meanwhile, are resisting price cuts. Many are instead delisting their homes. The delisting-to-new listing ratio climbed to 0.21 in June, up from 0.13 in May, meaning 21 homes were removed for every 100 newly listed. In Miami, the ratio reached 59 per 100 listings.
This reluctance is slowing inventory growth and keeping prices elevated, further compounding affordability challenges.
Numbers and outlook dwindle
Builders are also cautious as single-family construction slows. While housing starts rose 4.6% from May to June, they remained slightly below last year’s levels. Permits dropped 4.4% year-over-year in June. High financing costs, weak demand, and new tariffs on materials are curbing development, despite a national shortage of about 4 million homes.
The South and West are seeing supply exceed demand, leading to slower sales and lower prices, while the Northeast and Midwest remain tight markets with continued competition.
Though activity has slowed, experts stress the market is not in crisis. With most homeowners holding equity and low-rate mortgages, conditions could rebalance as interest rates ease and expectations adjust, Realtor.com noted.
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